Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

Three months ended

Six months ended

Jun 30,

Jun 30,

2023

2022

2023

2022

Unaudited

Unaudited

Unaudited

Unaudited

GAAP net loss

$  (5,818)

$  (1,123)

$  (10,690)

$  (2,819)

Equity-based compensation expense included in cost of
revenues

390

344

794

683

Equity-based compensation expense included in research
and development expenses

2,420

2,006

4,593

4,001

Equity-based compensation expense included in sales
and marketing expenses

468

340

861

673

Equity-based compensation expense included in general
and administrative expenses

927

613

1,816

1,335

Amortization  of intangible assets related to acquisition
of Intrinsix, VisiSonics business in 2023 and Hillcrest
Labs business, and investments in NB-IoT and
Immervision technologies

702

1,282

1,379

2,564

Costs associated with the Intrinsix and VisioSonics
business acquisition

312

325

638

651

Loss associated with the remeasurement of marketable
equity securities, net of taxes.

119

527

236

1,398

NRE revenues associated with the purchase price
allocation (PPA) related to Intrinsix acquisition

0

0

0

42

Non-GAAP net income (loss)

$  (480)

$  4,314

$  (373)

$  8,528

GAAP weighted-average number of Common Stock
used in computation of diluted net loss and loss per share
(in thousands)

23,476

23,174

23,405

23,139

—

820

—

795

Weighted-average number of Common Stock used in
computation of diluted earnings per share, excluding the
above (in thousands)

23,476

23,994

23,405

23,934

GAAP diluted loss per share

$  (0.25)

$  (0.05)

$  (0.46)

$  (0.12)

Equity-based compensation expense

$  0.18

$  0.14

$  0.34

$  0.28

Amortization of intangible assets related to acquisition of
Intrinsix, VisiSonics business in 2023 and Hillcrest Labs
business, and investments in NB-IoT and Immervision
technologies

$  0.03

$  0.06

$  0.06

$  0.11

Costs associated with the Intrinsix and VisioSonics
business acquisitions

$  0.01

$  0.01

$  0.03

$  0.03

Loss associated with the remeasurement of marketable
equity securities, net of taxes.

$  0.01

$  0.02

$  0.01

$  0.06

Non-GAAP diluted earnings (loss) per share

$  (0.02)

$  0.18

$  (0.02)

$  0.36